The blue-chip Bordeaux First Growths trend performance in August rose 2.7% (Liv-ex Fine Wine 50), stretching past the S&P500’s 2.5% growth in the month. With the FTSE 100 trailing at 1.5% rise and gold declining 0.5% in the same period, fine wine is showing its value to investors as an alternative asset.
Bordeaux accounted for 40% of the trade on the global fine wine exchange in August 2021, but investment wines from other regions were some of the top market movers. Super Tuscan, Masseto 2015 was the top price performer in August, rising 14%, followed closely by Napa icon, Screaming Eagle 2008 which saw a 12.3% uplift in value in the month.
The recently published Liv-ex 2021 Classification ranks investment wines in a five-tier system based on value and levels of trade on Liv-ex. Updated every two years, the 2021 Classification illustrates the depth of the broadening fine wine market with Italian and US wines ranked alongside the Bordeaux First Growth and Burgundy super brands.
With the Liv-ex 100 and Liv-ex 1000 benchmarks both enjoying consecutive growth over the last 16 and 12 months relatively, fine wine is demonstrating its investment benefits of stable growth and resistance to extraordinary events, i.e the pandemic, and negative economic pressures such as inflation. That alongside the advantageous tax treatment wine enjoys, makes it a valuable option to diversify, de-risk and strengthen an investment portfolio.
Find out more about the current fine wine market performance by speaking to a member of the Vin-X team on 0203 384 2262 and see our latest Market Report.